New York Governor Hochul has proposed a $227 billion budget plan. Her proposed budget plan is now facing challenges from both progressives and Republicans as the state’s fiscal year comes to an end in March.
The Democrats are advocating for tax increases on the richest earners while the Republicans oppose tax increases. Democrats are advocating tax increases to support lower-income New Yorkers, infrastructure, and health while Republicans are urging Hochul to reduce the cost of doing business in the state. Governor Hochul has stated that her budget is aimed at providing safeguards against potential economic downturns due to high inflation and rising interest rates. Governor Hochul has set aside money in New York‘s rainy day fund to help offset the effects of a cloudy economy.
According to a published article in Spectrum News, Governor Hochul has put forward a state budget proposal of almost $230 billion, which encompasses funds for the city to assist with the cost of taking in asylum seekers, as well as a fresh tax to aid the financing of public transportation.
According to a published article in New York Times, the budget plan of Governor Hochul consists of a long-term strategy to rescue the city’s struggling subway system and manage the ongoing migrant crisis. While the state is projected to close with an $8.7 billion surplus, progressive lawmakers and advocates are urging Governor Hochul to increase taxes on the wealthiest earners to fund schools, infrastructure, and health programs. Republicans argue that the budget of Governor Hochul which includes a payroll tax increase for counties in the Metropolitan Transportation Authority’s service area and support for linking the minimum wage to inflation is harmful to businesses.
Governor Hochul has set aside money in the state’s rainy day fund to help offset the effects of a potential economic downturn. She has also proposed tax and fee increases, such as an increase in the payroll tax for the New York City metropolitan area to fund mass transit and boost the MTA’s finances, and an increase in tuition at public colleges and universities. However, these proposals have been criticized as regressive by some lawmakers who argue that they rely on working New Yorkers and don’t target the top 1%.
Budget gaps are expected in the coming years, which could make questions about taxes and spending even harder in the near future. For now, Democratic members of the Legislature have embraced Hochul’s remarks that she wants to work with them cordially on the budget. However, with competing interests and concerns, the governor’s proposed budget could face a major test when it comes to taxes.